The aggregate demand curve shows the relationship between the ________ and ________.
A)inflation rate; quantity of real GDP demanded
B)real interest rate: quantity of real GDP supplied
C)nominal interest rate; quantity of real GDP demanded
D)price level; quantity of real GDP demanded

Question

Quizplus · Accepted Answer

The aggregate demand curve shows the relationship between the price level (a measure of inflation) and the quantity of real GDP demanded by households, businesses, and the government. As the price level increases, the quantity of real GDP demanded typically decreases, and vice versa.

The Aggregate Demand Curve Shows the Relationship Between the ________